Research Alert: CFRA Keeps Strong Buy Recommendation On Genpact Limited
01:50 PM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target of $54 (up $3), or 20.6x our 2022 EPS view, is below the business process management (BPM) space average of 24.5x -- we think G should trade closer to peers given the lasting advantages it forged exiting the pandemic that should lead to durable earnings growth in future periods. We trim our 2021 EPS view by $0.06 to $2.30 but keep 2022's at $2.62. G prints Q1 adj-EPS of $0.59 vs. $0.53, topping consensus by $0.11, as higher productivity led to a wider operating margin (17.2% vs. 14.7% consensus). G delivered revenues of $946M, topping consensus by $22M, as strong demand in Transformational Services drove the beat. First-quarter results were sound by all key metrics, with a bump in 2021 growth for Global Client to 8%-10% (vs. 7%-9%). Notably, other than a resumption of some variable costs (e.g., travel), nothing from the quarter leads us to believe recent outperformance is not repeatable, which would leave outyear revenue and earnings estimates conservative at current levels, in our view.